VIX Daily Update: Volatility Hits Five-Week Low

CBOE VIX Volatility Index continues lower.

The CBOE VIX (NYSEARCA:VXX) posted its sixth consecutive decline on Friday, as calm returned to Wall Street following last month’s chaos.

The Chicago Board Options Exchange (CBOE) Volatility Index fell 6.4% to 18.25, its lowest since early December. The so-called “fear index” has witnessed a sharp drop in momentum, with the relative strength index falling below 40 and the MACD dipping into negative territory.

Major VIX ETFs:

iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA:VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second month VIX Futures contracts. VXX declined 3.3%.

ProShares Ultra Short Term VIX Futures: (NYSEARCA:UVXY) UVXY is designed to deliver 2X (leveraged) returns of the day’s moves in the S&P 500 VIX Short Term Futures Index. It tacks the two front months of the futures contract. UVXY declined 5.1%.

VelocityShares Daily 2x VIX Short Term Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN designed to deliver 2X the returns of the daily S&P 500 Short Term Futures Index. TVIX declined 6.3%.

The Final Word: The outlook on Wall Street has improved dramatically since the holidays. However, an extension of the government shutdown into next week could have adverse effects on the recovery heading into corporate earnings season.

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